The Australian Competition and Consumer Commission has issued a draft determination proposing to grant authorisation* to Inghams to conduct collective contract negotiations with its chicken growers in South Australia, ACCC Chairman, Professor Allan Fels, said today.
Inghams sought authorisation to conduct collective negotiations regarding contract terms and conditions (including in relation to chicken growing fees) in accordance with a Code of Practice and Minimum Contract Guidelines. The ACCC had previously granted authorisation to Inghams in South Australia in similar terms, but that authorisation had recently expired.
In proposing to grant authorisation for five years, subject to certain conditions, the ACCC noted that the South Australian Government has recently drafted new legislation to regulate the industry and allow for collective bargaining between chicken growers and processors in that State.
"The ACCC believes that the public benefits gained from these arrangements are likely to outweigh any anti-competitive detriment", Professor Fels said. "In particular it is the ACCC's view that the collective bargaining arrangements are likely to provide a measure of certainty and continuity along with some savings in adjustment costs to Inghams and its growers in the context of likely regulation of the industry in SA.
"The ACCC believes that the possible anti-competitive effect of the proposed arrangements is very limited when having regard to the nature of the proposed arrangements and the structure of this industry".
Before the ACCC's final decision, interested parties who are dissatisfied with the ACCC's draft decision can request a public conference to discuss the operation and effect of the draft determination or make an additional submission. Interested parties wishing to make a submission in relation to the draft determination should address their submission to: The General Manager, Adjudication Branch, ACCC, PO Box 1199, Dickson ACT 2601 or adjudication@accc.gov.au.
* The Trade Practices Act 1974 prohibits competitors agreeing to work together in a way that substantially reduces competition between them. Authorisation provides immunity from court action arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any public detriment.